Bath & Body Works Issues Cautious Forecast as Tariffs and Weak Spending Weigh on Outlook

The retailer's stock drops following warnings of challenges from new U.S. tariffs on Chinese imports and soft consumer spending, despite stronger-than-expected holiday-quarter results.

• Bath & Body Works forecasts fiscal 2025 earnings per share between $3.25 and $3.60, below analysts' expectations of $3.62.
• The company projects net sales growth of 1% to 3% for the year, compared to analysts' estimates of a 2.8% increase.
• Recently enacted U.S. tariffs on Chinese goods and ongoing economic pressures, including high interest rates and inflation, are expected to impact results.
• Fourth-quarter earnings exceeded expectations, with adjusted EPS of $2.09 on $2.79 billion in revenue, supported by successful holiday marketing efforts.
• Shares of Bath & Body Works fell 10% after the announcement, and the company also unveiled a $500 million share repurchase program.

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